Question

Discuss the concept of globalization vs. customization and the measures taken by the global brand (Nestle) to recognize that offerings and communication should be adapted to local preferences and conditions. Support your answer with solid examples.

Discuss the main challenges faced by the Nestle in brand building such as positioning, communication, environmental change, product life cycle, brand equity, market share, consumer behavior, etc ..

The questions about Nestle

Answer 1

Difference between Globalization and Customization:

The market segmentation strategy of Globalization means that the strategies used for the promotion of product all around the world are same irrespective of the customer group while in customization, strategies are tailor made as per the requirement of the customer group depending on their taste and preference. The companies using globalization strategy has the disadvantage that they may target wrong group of customers but they have advantage of reducing cost. Customization strategy improves the sales and profits by focusing on interested targeted customers.

Initiatives by Nestle to make offerings adaptable to local preferences and conditions:

a) Nestle try its best to manage supply chain. Nestle company use digital technology to know the needs of the customers and serve their customers in personalized way.

b) Nestle builds sustainable business culture to make healthier future for their customers.

c) Nestle works on cost management and achieving efficiency and reinvest those free resources in product innovation and building brand.

Challenges faced by Nestle in brand building:

a) Nestle has many competitors like Mondelez, MARS, Kraft Foods, Danone, Hersheys, etc. Nestle has to compete with them and thus require to position its product comparatively superior to them.

b) Mondelez is the top competitor of Nestle in terms of consumer preferences, behaviour, strategies and product variation. Nestle has to spend huge resources on innovation to compete with Mondelez.